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As part of the Council of Australian Governments (COAG) work on skills, there has been a policy push to increase the number of people completing higher-level vocational education and training (VET) qualifications: diplomas and advanced diplomas. The foundation for this paper was a set of projections prepared by the Centre for the Economics of Education and Training (CEET) which pointed to a significant shortfall in people with diploma and advanced diploma-level qualifications in 2016. The paper outlines recent trends in the provision of these qualifications; overall there has been virtually no growth over the period 2003-07, with growth in some areas offset by declines in others. It also looks at how those with diplomas and advanced diplomas are faring in the labour market. The picture is rather mixed, suggesting that people with diplomas and advanced diplomas fare, on average, better than those with other vocational qualifications or no post-school qualifications, but face severe competition from degree holders and others who have obtained skills through experience.